Get your income information sorted.
• Gather at least two paystubs and two years of your W-2s and federal tax returns, including all schedules. It is ideal to be at your current employer for at least two years.
• Ask your loan advisor about additional documentation requirements if you are self-employed.
• Contact your loan advisor if you received a bonus, commissions, or have changed your job or position recently. If possible, don’t switch from a salaried position to one that’s solely commission.
Get your assets in order.
• Make sure you have all the funds necessary to close in one banking account for at least two months prior to your application. Document all deposits, as each could be scrutinized.
• Retain all pages of your asset statements—even blank or advertisement pages.
• Deposit checks individually, then photocopy deposited checks and deposit slips to prove income is not borrowed.
• If you’re planning on selling any stocks, bonds, investments, or borrowing against a retirement account, do it now.
• If you’re a renter, retain 12 months of canceled checks to demonstrate timely payments and/or written verification from your landlord or management company.
• If you’re about to sell your current home, retain a copy of the closing disclosure or settlement statement.
• If you’re not planning on selling your current home, you’ll need to demonstrate to your lender that you can cover the costs of both properties.
• If you live with your family, you may need to present a letter stating that you live rent-free.
Audit your credit report.
• Get a free copy of your credit report at annualcreditreport.com and clear up any errors.
• Avoid opening any new credit accounts to avoid inquiries—this could lower your score and increase your mortgage rate.
We are always here to answer any questions you may have. Contact us at any time.